Learning Outcomes

1. Understand the concept of model fit in a PLS-SEM context.
2. Assess the path coefficients in the structural model.
3. Evaluate the model’s explanatory power.
4. Evaluate the model’s predictive power using the PLSpredict procedure.
5. Understand the concept of model comparisons and metrics used for selecting the best model.
6. Learn how to report and interpret the structural model results.

Chapter Preview

Chapters 4 and 5 provided insights into the evaluation of reflective and formative measurement models. This chapter continues the analysis and focuses on the structural model that represents the constructs of interest and their relationships, which have been derived from structural theory. Assessment of the structural model results enables you to determine the model’s capability to explain and predict one or more target constructs. We first discuss the concept of model fit in a PLS-SEM context and then rather focus on a range of measures that should be used to assess the structural model. The chapter concludes with a practical application and assessment of the PLS-SEM results of the structural model by means of our corporate reputation example and using the SmartPLS software.